Skip to main content
Learn

What Are the Limitations of Achieving DVP for Large, Off-Chain OTC Crypto Derivative Trades?

Reliance on bilateral trust, off-chain legal complexity, and difficulty synchronizing large on-chain asset transfer with off-chain settlement.
Greeks.Live15.11.25

What Are the Limitations of Achieving DVP for Large, Off-Chain OTC Crypto Derivative Trades?

The primary limitations are the reliance on bilateral trust, the need for off-chain legal agreements, and the difficulty of synchronizing the final on-chain asset transfer with the off-chain payment/settlement. Large trades may also exceed the liquidity of on-chain DVP solutions.

They often rely on prime brokers or specialized custodians to manage the simultaneous settlement process.

How Do Blockchain-Based Ledgers Fundamentally Address non-DVP Risk?
How Does the Legal Framework Support Bilateral DVP Arrangements?
How Can Blockchain Technology Reduce the Capital Required for Bilateral OTC Derivative Settlement?
What Are the Challenges of Cross-Market Surveillance for a CEX That Offers Both Spot and Derivatives Trading?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.